HealthWarehouse.com (HEWA) 10-K 25 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Mar. 21, 2016	Jun. 30, 2015
Document And Entity Information
Entity Registrant Name	HealthWarehouse.com, Inc.
Entity Central Index Key	754,813
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 2,876,000
Entity Common Stock, Shares Outstanding		37,665,162
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash	$ 11,217	$ 506,019
Restricted cash	145,088	195,088
Accounts receivable, net	51,627	100,886
Inventories	182,647	144,236
Prepaid expenses and other current assets	81,718	60,202
Total current assets	472,297	1,006,431
Property and equipment, net	409,248	511,286
Web development costs, net	84,562	142,541
Total assets	966,107	1,660,258
Current liabilities:
Accounts payable - trade	2,189,649	2,542,938
Accounts payable - related parties	862	84,314
Accrued expenses and other current liabilities	597,665	687,515
Current portion of equipment lease payable	46,143	64,101
Notes payable, net of debt discount of $0 and $58,367 as of December 31, 2015 and 2014, respectively	991,089	791,633
Note payable and other advances - related parties	23,889	73,095
Redeemable preferred stock - Series C; par value $0.001 per share; 10,000 designated Series C: 10,000 issued and outstanding as of December 31, 2015 and 2014 (aggregate liquidation preference of $1,000,000)	1,000,000	1,000,000
Total current liabilities	$ 4,849,297	5,243,596
Long term liabilities:
Long term portion of equipment lease payable		46,143
Total long term liabilities		46,143
Total liabilities	$ 4,849,297	$ 5,289,739
Preferred stock - par value $0.001 per share; authorized 1,000,000 shares; issued and outstanding as of December 31, 2015 and 2014 as follows:
Convertible preferred stock - Series A - 200,000 shares designated Series A; 44,443 shares available to be issued; no shares issued and outstanding
Convertible preferred stock - Series B - 625,000 shares designated Series B; 483,512 and 451,879 shares issued and outstanding as of December 31, 2015 and 2014, respectively (aggregate liquidation preference of $4,889,043 and $4,569,175 as of December 31, 2015 and 2014, respectively)	$ 484	$ 452
Common stock - par value $0.001 per share; 100,000,000 shares authorized (see Note 8), 38,844,374 and 38,749,595 shares issued and 37,665,162 and 37,570,383 shares outstanding as of December 31, 2015 and 2014, respectively	38,844	38,750
Additional paid-in capital	30,656,598	29,966,040
Employee advances	0	(2,143)
Treasury stock at cost, 1,179,212 shares as of December 31, 2015 and 2014	(3,419,715)	(3,419,715)
Accumulated deficit	(31,159,401)	(30,212,865)
Total stockholders' deficiency	(3,883,190)	(3,629,481)
Total liabilities and stockholders' deficiency	$ 966,107	$ 1,660,258

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Current liabilities:
Current portion of notes payable, net of debt discount	$ 0	$ 58,367
Redeemable preferred stock Series C, par value	0.001	0.001
Redeemable preferred stock Series C, shares designated	10,000	10,000
Redeemable preferred stock Series C, shares issued	10,000	10,000
Redeemable preferred stock Series C, shares outstanding	10,000	10,000
Redeemable preferred stock Series C, aggregate liquidation preference	$ 1,000,000	$ 1,000,000
Stockholders' deficiency:
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, authorized	1,000,000	1,000,000
Series A Convertible preferred stock, shares designated	200,000	200,000
Series A Convertible preferred stock, shares available to be issued	44,443	44,443
Series A Convertible preferred stock, shares issued	0	0
Series A Convertible preferred stock, shares outstanding	0	0
Series B Convertible preferred stock, shares designated	625,000	625,000
Series B Convertible preferred stock, shares issued	483,512	451,879
Series B Convertible preferred stock, shares outstanding	483,512	451,879
Series B Convertible preferred stock, aggregate liquidation preference	$ 4,889,043	$ 4,569,175
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized	100,000,000	100,000,000
Common stock, shares issued	38,844,374	38,749,595
Common stock, shares outstanding	37,665,162	37,570,383
Treasury stock, shares	1,179,212	1,179,212

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Consolidated Statements Of Operations
Net sales	$ 7,018,137	$ 6,129,660
Cost of sales	2,546,392	2,492,382
Gross profit	4,471,745	3,637,278
Operating expenses:
Selling, general and administrative expenses	5,001,654	5,370,727
Loss from operations	(529,909)	(1,733,449)
Other income (expense):
Gain on settlement of payables	111,374	281,911
Interest expense	(208,147)	(331,741)
Total other expense	(96,773)	(49,830)
Net loss	(626,682)	(1,783,279)
Preferred stock:
Series B convertible contractual dividends	(319,854)	(298,918)
Net loss attributable to common stockholders	$ (946,536)	$ (2,082,197)
Per share data:
Net loss - basic and diluted	$ (0.02)	$ (0.06)
Series B convertible contractual dividends	(0.01)	(0.01)
Net loss attributable to common stockholders - basic and diluted	$ (0.03)	$ (0.07)
Weighted average number of common shares outstanding - basic and diluted	37,574,278	30,036,885

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY - USD ($)	Convertible Series B Preferred Stock	Common Stock	Additional Paid-In Capital	Employee Advances	Treasury Stock	Accumulated Deficit	Total
Beginning Balance, Amount at Dec. 31, 2013	$ 422	$ 27,708	$ 27,166,147	$ (9,001)	$ (3,419,715)	$ (28,130,668)	$ (4,365,107)
Beginning Balance, Shares at Dec. 31, 2013	422,315	27,708,303			1,179,212
Stock-based compensation			830,518				830,518
Shares issued as pursuant to employment agreement, Amount		$ 20	10,626				10,646
Shares issued as pursuant to employment agreement, Shares		21,289
Issuance of Series B preferred stock as payment-in-kind for dividend, Amount	$ 30		$ 279,350				279,380
Issuance of Series B preferred stock as payment-in-kind for dividend, Shares	29,564
Contractual dividends on Series B convertible preferred stock						$ (298,918)	(298,918)
Warrants issued as debt discount in connection with notes payable			$ 36,000				36,000
Issuance of common stock and warrants for cash, Amount		$ 11,022	1,526,733				1,537,755
Issuance of common stock and warrants for cash, Shares		11,020,003
Imputed value of services contributed			$ 116,666				116,666
Change in fair value of collateral securing employee advances				$ 6,858			$ 6,858
Cashless exercise of warrants into common stock, Amount
Cashless exercise of warrants into common stock, Shares
Debt discount related to repricing of warrants in connection with notes payable
Net loss						$ (1,783,279)	$ (1,783,279)
Ending Balance, Amount at Dec. 31, 2014	$ 452	$ 38,750	$ 29,966,040	$ (2,143)	$ (3,419,715)	$ (30,212,865)	(3,629,481)
Ending Balance, Shares at Dec. 31, 2014	451,879	38,749,595			1,179,212
Stock-based compensation			320,366				320,366
Issuance of Series B preferred stock as payment-in-kind for dividend, Amount	$ 32		$ 298,886				298,918
Issuance of Series B preferred stock as payment-in-kind for dividend, Shares	31,633
Contractual dividends on Series B convertible preferred stock						$ (319,854)	(319,854)
Warrants issued as debt discount in connection with notes payable			$ 69,600				$ 69,600
Issuance of common stock and warrants for cash, Amount
Issuance of common stock and warrants for cash, Shares
Imputed value of services contributed
Change in fair value of collateral securing employee advances				$ 2,143			$ 2,143
Cashless exercise of warrants into common stock, Amount		$ 94	$ (94)
Cashless exercise of warrants into common stock, Shares		94,779
Debt discount related to repricing of warrants in connection with notes payable			1,800				$ 1,800
Net loss						$ (626,682)	(626,682)
Ending Balance, Amount at Dec. 31, 2015	$ 484	$ 38,844	$ 30,656,598		$ (3,419,715)	$ (31,159,401)	$ (3,883,190)
Ending Balance, Shares at Dec. 31, 2015	483,512	38,844,374			1,179,212

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities
Net loss	$ (626,682)	$ (1,783,279)
Adjustments to reconcile net loss to net cash used in operating activities:
Change in fair value of collateral securing employee advances	2,143	6,858
Depreciation and amortization	184,320	172,167
Stock-based compensation	320,366	841,164
Gain on settlement of accounts payable	$ (111,374)	(281,911)
Imputed value of services contributed		116,666
Amortization of debt discount	$ 129,767	247,631
Changes in operating assets and liabilities:
Accounts receivable	49,259	206,325
Inventories	(38,411)	133,064
Prepaid expenses and other current assets	(21,516)	(1,059)
Accounts payable - trade	(241,915)	(485,151)
Accounts payable - related parties	(83,452)	623
Accrued expenses and other current liabilities	(110,786)	(48,867)
Net cash used in operating activities	(548,281)	(875,769)
Cash flows from investing activities
Change in restricted cash	50,000	(195,088)
Capital expenditures	(6,331)	(2,964)
Website development costs	(17,972)	(114,616)
Net cash provided by (used in) investing activities	25,697	(312,668)
Cash flows from financing activities
Principal payments on equipment leases payable	(64,101)	(56,043)
Proceeds from issuance of notes payable	250,000	$ 150,000
Repayment of notes payable	(108,911)
Repayment of notes payable - related party	$ (49,206)	$ (5,000)
Net proceeds from the sale of common stock		1,537,755
Net cash provided by financing activities	$ 27,782	1,626,712
Net (decrease) increase in cash	(494,802)	438,275
Cash - beginning of period	506,019	67,744
Cash - end of period	11,217	506,019
Cash paid for:
Interest	$ 78,489	$ 86,692
Taxes
Non-cash investing and financing activities:
Issuance of Series B preferred stock for settlement of accrued dividends	$ 298,918	$ 279,380
Cashless exercise of warrants into common stock	95
Warrants issued in connection with notes payable	71,400	$ 36,000
Accrual of contractual dividends on Series B convertible preferred stock	$ 319,854	$ 298,918

Organization and Basis of Prese

Organization and Basis of Presentation	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
1. Organization and Basis of Presentation	HealthWarehouse.com, Inc. (“HEWA” or the “Company”), a Delaware company incorporated in 1998, is an online mail order pharmacy, licensed in 50 states and the District of Columbia to focus on the out-of-pocket prescription drug market. The Company is Verified Internet Pharmacy Practice Site (“VIPPS”) accredited by the National Association of Boards of Pharmacy (“NABP”). The Company markets a complete range of generic, brand name, and pet prescription medications as well as over-the-counter ("OTC") medications and products.

Going Concern and Management's

Going Concern and Management's Liquidity Plans	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
2. Going Concern and Management's Liquidity Plans	The Company has financed its operations primarily through debt and equity financings. As of December 31, 2015, the Company had a working capital deficiency of $4,377,000 and an accumulated deficit of $31,159,401. During the years ended December 31, 2015 and 2014, the Company incurred net losses of $626,682 and $1,783,279, respectively and used cash in operating activities of $548,281 and $875,769, respectively. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Subsequent to December 31, 2015, the Company continues to incur net losses and use cash in operating activities. Funds from the Company’s private placement offering completed during 2014 and increased borrowings from the Company’s senior lender during 2015 have improved the Company’s current cash position and working capital constraints; however, the funds are not sufficient to satisfy its current obligations. On February 13, 2013, the Company received a Notice of Redemption related to its Series C Redeemable Preferred Stock aggregating $1,000,000 (see Note 9). As a result of receiving the Notice of Redemption, the Company must now apply all of its assets to redemption of the Series C Preferred Stock and to no other corporate purpose, except to the extent prohibited by Delaware law governing distributions to stockholders (the Company is not permitted to utilize toward the redemption those assets required to pay its debts as they come due and those assets required to continue as a going concern). The Company recognizes it will need to raise additional capital in order to fund operations, meet its payment obligations and execute its business plan. There is no assurance that additional financing will be available when needed or that management will be able to obtain financing on terms acceptable to the Company and whether the Company will become profitable and generate positive operating cash flow. If the Company is unable to raise sufficient additional funds, it will have to develop and implement a plan to further extend payables, attempt to extend note repayments, attempt to negotiate the preferred stock redemption and reduce overhead until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful. If the Company is unable to obtain financing on a timely basis, the Company could be forced to sell its assets, discontinue its operation and /or seek reorganization under the U.S. bankruptcy code. Accordingly, the accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which contemplates continuation of the Company as a going concern and the realization of assets and the satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the consolidated financial statements do not necessarily represent realizable or settlement values. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
3. Summary of Significant Accounting Policies	Principles of Consolidation The consolidated financial statements include the accounts of HealthWarehouse.com, Inc., Hwareh.com, Inc., Hocks.com, Inc., ION Holding NV, ION Belgium NV and Pagosa Health LLC, its wholly-owned subsidiaries. ION Holding NV and ION Belgium NV are inactive subsidiaries. All material inter-company balances and transactions have been eliminated in consolidation. On June 4, 2013, the Company formed a wholly-owned subsidiary called Pagosa Health LLC (“Pagosa”). On January 14, 2014, the Company closed the Pagosa location and decided to focus on its core consumer prescription business. The entity was dissolved in 2014. See Note 9. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s significant estimates include reserves related to accounts receivable and inventory, the recoverability and useful lives of long-lived assets, the valuation allowance related to deferred tax assets, the valuation of equity instruments and debt discounts. Reclassifications Certain accounts in the prior period consolidated financial statements have been reclassified for comparison purposes to conform to the presentation of the current period consolidated financial statements. These reclassifications had no effect on the previously reported net loss. Cash The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. As of December 31, 2015 and 2014, the Company does not have any cash equivalents. Restricted Cash Restricted cash represents cash held by the Company’s credit card processor as a reserve to cover potential future refunds and funds held by the senior lender as collateral for the Company’s Senior Note (See Note 6). Allowance for Doubtful Accounts Receivable Accounts receivable are shown net of an allowance for doubtful accounts of $47,143 and $47,233 as of December 31, 2015 and 2014, respectively. The Company’s management has established an allowance for doubtful accounts sufficient to cover probable and reasonably estimable losses. The nature of the business is that the majority of the payments are made before the product is sent. If the financial conditions of customers were to materially deteriorate, an increase in the allowance amount could be required. The allowance for doubtful accounts considers a number of factors, including collection experience, current economic trends, estimates of forecasted write-offs, aging of the accounts receivable, and other factors. Inventories Inventories consist of finished goods and is stated at the lower of cost (using the first-in, first-out method) or market. As part of the valuation process, inventory reserves are established to state excess and slow-moving inventory at their estimated net realizable value. The valuation process for excess or slow-moving inventory contains uncertainty because management must use judgment to estimate when the inventory will be sold and the quantities and prices at which the inventory will be sold in the normal course of business. Inventory reserves are periodically reviewed, reflecting current risks, trends and changes in industry conditions. When preparing these estimates, management considers historical results, inventory levels and current operating trends. In the event the estimates differ from actual results, inventory-related reserves may be adjusted and could materially impact the results of operations. Property and Equipment, net Property and equipment are stated at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The costs of additions and betterments are capitalized and expenditures for repairs and maintenance, which do not extend the economic useful life of the related assets, are expensed in the period incurred. Gains or losses on disposal of property and equipment are reflected in the statements of operations in the period of disposal. Impairment of Long-Lived Assets The Company reviews the carrying value of intangibles and other long-lived assets for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets is measured by comparing the carrying amount of the asset or asset group to the undiscounted cash flows that the asset or asset group is expected to generate. If the undiscounted cash flows of such assets are less than the carrying amount, the impairment to be recognized is measured by the amount by which the carrying amount of the property, if any, exceeds its fair value. As of December 31, 2015 and 2014, the Company has not recognized any such impairment. Website Development Costs The Company capitalizes costs associated with the development of its website. During the years ended December 31, 2015 and 2014, the Company capitalized $17,972 and $114,616, respectively, of website development costs. The Company is amortizing the website development costs on a three year straight-line basis and incurred amortization expense of $75,951 and $55,855 during the years ended December 31, 2015 and 2014, respectively. As of December 31, 2015, unamortized website development costs totaled $84,562. Estimated future amortization expense related to website development costs is $62,361 in 2016, $21,147 in 2017 and $1,054 in 2018. Shipping and Handling Costs The Company policy is to provide free standard shipping and handling for most orders. Shipping and handling costs incurred are recognized in selling, general and administrative expenses. Such amounts aggregated $612,377 and $511,636 for the years ended December 31, 2015 and 2014, respectively. In certain circumstances, shipping and handling costs are charged to the customer and recognized in revenues. The amounts recognized in revenues for the years ended December 31, 2015 and 2014 were $251,550 and $162,221, respectively. Fair Value of Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. These fair value measurements apply to all financial instruments that are measured and reported on a fair value basis. Based on the observability of the inputs used in the valuation techniques, financial instruments are categorized according to the fair value hierarchy, which ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1 - Observable inputs such as quoted prices in active markets. Level 2 - Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. Level 3 - Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the assignment of an asset or liability within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The carrying value of items included in working capital approximates fair value because of the relatively short maturity of these instruments. The Company’s notes payable approximate fair value because the terms are substantially similar to comparable debt in the marketplace. Income Taxes Deferred tax assets and liabilities are determined on the basis of the difference between the tax basis of assets and liabilities and their respective financial reporting amounts (“temporary differences”) at enacted tax rates in effect for the years in which the temporary differences are expected to reverse. U.S. GAAP prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Management has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company’s financial statements as of December 31, 2015 and 2014. The Company does not expect any significant changes in the unrecognized tax benefits within twelve months of the reporting date. The Company classifies interest expense and any related penalties related to income tax uncertainties as a component of income tax expense. No interest or penalties have been recognized during the years ended December 31, 2015 and 2014. Debt Discounts The Company records, as a discount to notes and convertible notes, the relative fair value of warrants issued in connection with the issuances and the intrinsic value of any conversion options based upon the differences between the fair value of the underlying Common Stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized to interest expense using the interest method over the earlier of the term of the related debt or their earliest date of redemption. Revenue Recognition Revenues for the sales of products are recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed and determinable and collectability is reasonably assured. The Company defers revenue when cash has been received from the customer but delivery has not yet occurred. Such amounts are reflected as deferred revenues in the accompanying consolidated financial statements. Advertising The Company expenses all advertising costs as incurred. Advertising expense for the years ended December 31, 2015 and 2014 was $508,633 and $103,536, respectively. Sales Taxes The Company accounts for sales taxes imposed on its goods and services on a net basis in the statement of operations. Net Earnings (Loss) Per Share of Common Stock Basic net earnings (loss) per share is computed by dividing net earnings (loss) attributable to Common Stockholders by the weighted average number of common shares outstanding during the period. Diluted net earnings per share reflects the potential dilution that could occur if securities or other instruments to issue Common Stock were exercised or converted into Common Stock. Potentially dilutive securities are excluded from the computation of diluted net earnings per share if their inclusion would be anti-dilutive and consist of the following: December 31, 2015 2014 Options 5,341,284 3,944,557 Warrants 10,046,198 9,339,044 Series B Convertible Preferred Stock 5,507,202 5,146,902 Total potentially dilutive shares 20,894,684 18,430,503 Stock-Based Compensation Stock-based compensation expense for all stock-based payment awards is based on the estimated fair value of the award. For employees and directors, the award is measured on the grant date. For non-employees, the award is measured on the grant date and is then remeasured at each vesting date and financial reporting date. The Company recognizes the estimated fair value of the award as compensation cost over the requisite service period of the award, which is generally the option vesting term. The Company generally issues new shares of Common Stock to satisfy option and warrant exercises. Preferred Stock Preferred shares subject to mandatory redemption (if any) are classified as liability instruments and are measured at fair value. The Company classifies conditionally redeemable preferred shares, which includes preferred shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control, as temporary equity. At all other times, the Company classifies its preferred shares in stockholders’ deficiency. Convertible Instruments U.S. GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. An exception to this rule is when the host instrument is deemed to be conventional as that term is described under applicable U.S. GAAP. When the Company has determined that the embedded conversion options should not be bifurcated from their host instruments, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying Common Stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. The Company also records, when necessary, deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying Common Stock at the commitment date of the transaction and the effective conversion price embedded in the preferred shares. Common Stock Warrants and Other Derivative Financial Instruments The Company classifies as equity any contracts that (i) require physical settlement or net-share settlement or (ii) provide the Company with a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement) providing that such contracts are indexed to the Company's own stock. The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the Company’s control) or (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). The Company assesses classification of its Common Stock purchase warrants and other free standing derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required. The Company evaluated its free standing warrants to purchase Common Stock to assess their proper classification in the balance sheet as of December 31, 2015 and 2014 using the applicable classification criteria enumerated under U.S. GAAP and determined that the Common Stock purchase warrants contain fixed settlement provisions. Recently Issued Accounting Pronouncements In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entitiy’s Ability to Continue as a Going Concern” (“ASU 2014-15”). ASU 2014-15 requires management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern for each annual and interim reporting period. If substantial doubt exists, additional disclosure is required. This new standard will be effective for the Company for annual and interim periods beginning after December 15, 2016. Early adoption is permitted. Adoption of this pronouncement is not expected to have a material impact on its consolidated financial statements. The FASB has issued ASU No. 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This ASU requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. Adoption of this pronouncement is not expected to have a material impact on the Company’s consolidated financial statements. The FASB has issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in Accounting Standards Codification 605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective on January 1, 2017 and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. The Company has not yet determined the effect of the adoption of this standard and its impact on the Company's consolidated financial position and results of operations. In April 2015, the FASB issued ASU No. 2015-03 (ASU 2015-03), Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In July 2015, the FASB issued Accounting Standards Update No. 2015-11, “ Simplifying the Measurement of Inventory In August 2015, the FASB issued FASB ASU No. 2015-15, “ Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842)

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
4. Property and Equipment	Property and equipment consist of the following: December 31, Estimated 2015 2014 Useful Life Computer Software $ 230,299 $ 230,299 5 years Equipment 548,156 544,108 15 years Office Furniture and Equipment 95,754 95,754 7 years Computer Hardware 32,992 30,710 5 years Leasehold Improvements 303,318 303,318 (a) Total 1,210,519 1,204,189 Less: accumulated depreciation (801,271 ) (692,903 ) Property and Equipment, Net $ 409,248 $ 511,286 (a) Lesser of useful life or initial term of lease Depreciation expense for the above assets for the years ended December 31, 2015 and 2014 was $108,369 and $116,312, respectively.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
5. Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consisted of the following: December 31, 2015 2014 Deferred Rent $ 25,852 $ 36,053 Advertising 76,639 109,930 Salaries and Benefits 64,007 82,222 Dividend Payable 319,854 298,918 Accrued Interest 44,249 48,868 Accrued Rent 49,614 46,604 Other 17,450 64,920 Total $ 597,665 $ 687,515

Notes Payable

Notes Payable	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
6. Notes Payable	The Company is a party to a Loan and Security Agreement (the “Loan Agreement”) with a lender (the "Lender"). Under the terms of the Loan Agreement, the Company borrowed an aggregate of $1,000,000 from the Lender (the “Loan”), including $250,000 and $150,000 during the years ended December 31, 2015 and 2014, respectively. The Loan is evidenced by a promissory note (the “Senior Note”) in the face amount of $1,000,000 (as amended). The balance on the Senior Note was $891,089 and $750,000 as of December 31, 2015 and 2014, respectively. The Senior Note bears interest on the unpaid principal balance of the Note until the full amount of principal has been paid at a floating rate equal to the Prime Rate plus four and one-quarter percent (4.25%) per annum (7.75% as of December 31, 2015). Under the terms of the Loan Agreement, the Company has agreed to make monthly payments of accrued interest. The principal amount and all unpaid accrued interest on the Note is payable on May 31, 2016 (as amended), or earlier in the event of default or a sale or liquidation of the Company. The Loan may be prepaid in whole or in part at any time by the Company without penalty. The Senior Note contains financial covenants which require the Company to meet certain minimum targets for earnings before interest, taxes and non-cash expenses, including depreciation, amortization and stock-based compensation (“EBITDAS”). The Company granted the Lender a first, priority security interest in all of the Company’s assets, in order to secure the Company’s obligation to repay the Loan, including a Deposit Account Control Agreement, which grants the Lender a security interest in certain bank accounts. See Note 13. On August 27, 2015, a vendor of the Company was granted an order of garnishment against the Company’s funds held in a bank account in the amount of $83,766 for an unpaid debt, accordingly, such amount was classified as restricted cash. On September 16, 2015, the Company’s Lender filed a motion with the court to intercede in the garnishment action on the grounds that it has a superior lien on the funds which was granted at a hearing on October 6, 2015. In addition, as a result of the garnishment action, the Lender notified the Company that an event of default has occurred on the Senior Note and the Loan is in default and immediately payable. On November 30, 2015, the court issued an order that the Company’s Lender was the priority lienholder with regard to the funds being held in the bank account. Subsequent to receiving the court’s order, the funds were released by the bank to the Company’s Lender and the funds were applied against the Loan balance. The funds applied against the loan balance have been advanced back to the Company subsequent to December 31, 2015. On December 9, 2015, the Lender waived the events of default related to the garnishment. In connection with the Loan Agreement, the Company granted the Lender five-year warrants to purchase an aggregate of 1,875,000 shares of Common Stock at an exercise price ranging from $0.10 to $0.35 per share, of which 750,000 and 225,000 warrants were issued during the years ended December 31, 2015 and 2014, respectively. The warrants contain customary anti-dilution provisions. The warrants had an aggregate grant date relative fair value of $472,100, of which $69,600 and $36,000 were recorded as debt discounts during the years ended December 31, 2015 and 2014, respectively, and were amortized using the effective interest method over the term of the Senior Note. In addition, the Company agreed to modify the exercise price on 375,000 previously issued warrants from $0.35 to $0.12 effective November 11, 2015 which resulted in an additional debt discount of $1,800. The Company amortized $114,434 and $229,231 of the debt discount as interest expense during the years ended December 31, 2015 and 2014, respectively. As of December 31, 2014, the remaining unamoritized debt discount was $43,034 and the debt discounts were fully amortized as of December 31, 2015. Including the value of warrants issued in connection with Senior Note and subsequent amendments, the Senior Note had an effective interest rate of 37% per annum. The Loan Agreement contains customary negative covenants restricting the Company’s ability to take certain actions without the Lender’s consent, including incurring additional indebtedness, transferring or encumbering assets, paying dividends or making certain other payments, and acquiring other businesses. Upon the occurrence of an event of default, the Lender has the right to impose interest at a rate equal to five percent (5.0%) per annum above the otherwise applicable interest rate (the “Default Rate”). The repayment of the Loan may be accelerated prior to the maturity date upon certain specified events of default, including failure to pay, bankruptcy, breach of covenant, and breach of representations and warranties. On March 13, 2013, the Company converted an advance from a related party of $40,000 to a notes payable with a maturity date of December 31, 2013. The principal balance of the note is due at maturity, with no interest. The Company made principal payments of $31,000 and $5,000 during the years ended December 31, 2015 and 2014, respectively, and the note has been repaid in full as of December 31, 2015. Imputed interest expense on this note was de minimis. On August 15, 2013, a related party advanced $56,000 to the Company. Subsequently, $7,000 of that advance was repaid to the related party and the Company issued a promissory note for the principal balance of $49,000 (the “Original Note”). The Original Note bears interest at a rate of 10% per annum. The Original Note had a maturity date of November 7, 2013. Through November 21, 2013, the Company repaid $6,905 of the principal of the Original Note and a replacement note was issued for the remaining principal balance of $42,095 (the “Replacement Note”). The Replacement Note waived any existing default under the Original Note and had a maturity date of May 31, 2014. All other terms of the Replacement Note and Original Note are the same. Effective July 23, 2015, the Company reached a settlement agreement with the related party whereby the Company has agreed to pay twelve monthly payments of $4,099 on the first of each month starting on August 1, 2015 to fully satisfy its obligations under the note payable. During the year ended December 31, 2015, the Company made principal payments of $18,206. Interest expense on this note was $2,868 and $3,252 during the years ended December 31, 2015 and 2014, respectively. On October 30, 2013, the Company issued a note payable with a principal amount of $100,000 to a lender. The note bears interest on the unpaid principal balance until the full amount of principal has been paid at a floating rate equal to the Prime Rate plus four and one-quarter percent (4.25%) per annum (7.75% as of December 31, 2015). Under the terms of the note, the Company has agreed to make monthly payments of accrued interest. The principal amount and all unpaid accrued interest is payable on October 31, 2016 (as amended) but the Company’s obligations are unsecured and are subordinate to its obligations pursuant to the Senior Note described above. The Loan may be prepaid in whole or in part at any time by the Company without penalty. In consideration of the note payable, the Company issued to the lender a five-year warrant to purchase 150,000 shares of Common Stock at an exercise price of $0.35 per share. The warrant contains customary anti-dilution provisions. The warrant had a relative fair value of $36,800 that the Company has recorded as a debt discount which was amortized using the effective interest method over the term of the note. The Company amortized $15,333 and $18,400 of the debt discount as interest expense during the years ended December 31, 2015 and 2014, respectively. As of December 31, 2015, the debt discount was fully amortized. Including the value of the warrant, the note had an effective interest rate of 26% per annum. See Note 13.

Equipment Lease Payable

Equipment Lease Payable	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
7. Equipment Lease Payable	Future minimum lease payments, by year and in the aggregate, under capital leases, as of December 31, 2015, are as follows: For year ending December 31, Lease Payments 2016 48,696 Total $ 48,696 Less: Amount representing interest (2,553 ) Present value of future lease payments $ 46,143 Less: Current portion (46,143 ) Long term portion - As of December 31, 2015, the equipment has a gross and net book value of $305,641 and $220,344, respectively. Depreciation of assets held under capital leases in the amount of $20,377 is included in depreciation expense for each of the years ended December 31, 2015 and 2014.

Stockholders' Deficiency

Stockholders' Deficiency	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
8. Stockholders' Deficiency	The Company is authorized to issue up to 100,000,000 shares of Common Stock with a par value of $0.001 per share and 1,000,000 shares of preferred stock with a par value of $0.001 per share. Following the approval of the Board of Directors and stockholders of record as of August 25, 2014, the Company filed a Certificate of Amendment with the Secretary of State of Delaware on October 17, 2014, which increased the number of authorized shares of common stock of the Company from 50,000,000 to 100,000,000. Common Stock On January 15, 2014, the Company issued 21,289 shares of Common Stock to an employee in accordance with an employment agreement. The fair value of the shares was $10,646 based on the closing price on the date of issuance which was recorded as stock based compensation expense during the year ended December 31, 2014. During the year ended December 31, 2014, pursuant to a private placement offering of units that commenced on July 25, 2014 (the “2014 Private Placement”), the Company received an aggregate of $1,653,000 of gross proceeds (net of expenses of $115,245) related to the sale of 11,020,003 units at a price of $0.15 per unit. Each unit consists of (i) one share of the Company’s common stock and (ii) a five-year warrant to purchase one-half share of the Company’s common stock at an exercise price of $0.30 per share, such that warrants to purchase an aggregate of 5,509,998 shares of common stock were issued. The aggregate fair value of the warrants as of the issuance date was $1,096,202. The Company evaluated these warrants to assess their proper classification using the applicable criteria enumerated by U.S. GAAP and determined that such warrants met the criteria for equity classification. Proceeds from the sale of the units are to be used to fund the Company’s initiatives in the areas of marketing, website improvement and development, inventory and for general working capital purposes. During the year ended December 31, 2014, the Company granted certain options and warrants which, upon settlement, may have exceeded the limit on the authorized number of shares of common stock. The Company follows a sequencing policy for which in the event partial reclassification of contracts subject to ASC 815-40-25 is necessary, due to the Company’s inability to demonstrate it has sufficient authorized shares, shares will be allocated on the basis of earliest issuance date of potentially dilutive instruments with the earliest grants receiving first allocation of shares. The Company evaluated such instruments and determined that the fair value of such instruments at the date of issuance and the change in fair value was determined to have a de minimus impact on the Company’s consolidated financial statements. Subsequent to such issuance and prior to December 31, 2014, the Company obtained stockholder approval to increase the number of authorized shares of common stock of the Company from 50,000,000 to 100,000,000. On December 21, 2015, the Company issued 94,779 shares of Common Stock to a former employee resulting from a cashless exercise of warrants. Preferred Stock Series A Preferred Stock The Company has designated 200,000 of the 1,000,000 authorized shares of preferred stock as Series A Convertible Preferred Stock (“Series A Preferred Stock”). The Series A Preferred Stock is non-voting, has a liquidation preference equal to its purchase price, and does not pay dividends. The holders can call for the conversion of the Series A Preferred Stock at any time and are entitled to half a share of the Company’s Common Stock for each share of Series A Preferred Stock converted. As of December 31, 2015, 44,443 shares of Series A Preferred Stock are available to be issued. There are no shares of Series A Preferred Stock outstanding as of December 31, 2015 or 2014. Series B Preferred Stock The Company has designated 625,000 of the 1,000,000 authorized shares of preferred stock as Series B Convertible Preferred Stock (“Series B Preferred Stock”). The Series B Preferred Stock has voting rights equal to one vote for each common share equivalent, has a liquidation preference equal to its purchase price, and receives preferred dividends equal to 7% of all outstanding shares in either cash or payment-in-kind. The holders can call for the conversion of the Series B Preferred Stock at any time and are entitled to five shares of the Company’s Common Stock for each share of Series B Preferred Stock converted. In addition, the Series B Preferred Stock is subject to weighted average anti-dilution protection whereby if shares of Common Stock are sold below the current conversion price, the conversion price is reduced pursuant to a pre-defined formula. As of December 31, 2015 and 2014, Series B holders were entitled to convert into 11.39 shares of the Company’s Common Stock for each share of Series B Preferred Stock due to the anti-dilution provision. The anti-dilution provision represents a contingent beneficial conversion feature. As of December 31, 2015, an incremental 3,089,642 shares of Common Stock are issuable at conversion of the Series B Convertible Preferred Stock as compared to the original terms. Using the commitment date Common Stock price in effect, the commitment date value of the incremental shares is $7,798,256. However, recognition of beneficial conversion features is limited to the aggregate gross proceeds allocated to the preferred stock of $3,199,689 (422,315 shares of Series B Convertible Preferred Stock times $9.45 per share less the proceeds allocated to the warrants of $791,188) less the $1,666,967 beneficial conversion feature already recognized on the original 365,265 shares of Series B Preferred Stock (prior to the issuance of additional shares as payment-in-kind in lieu of cash dividends). Due to these limitations, no beneficial conversion feature value was recorded for the years ended December 31, 2015 and 2014. As of December 31, 2015 and 2014, the Company had accrued contractual dividends of $319,854 and $298,918, respectively, related to the Series B Preferred Stock. On January 1, 2016, and 2015, the Company issued 33,847 and 31,633 shares of Series B convertible preferred stock valued at approximately $320,000 and $299,000, respectively, representing approximately $0.66 in value per share of Series B Preferred Stock outstanding on each date, to the Series B convertible preferred stock owners as payment in kind for dividends. Series C Preferred Stock The Company’s Certificate of Designation designates 10,000 shares of the Company's preferred stock as Series C Preferred Stock to be issued at an original issue price of $100 per share. The Series C Preferred Stock has voting rights equal to one vote for each share held, has a liquidation preference equal to its purchase price, and has certain redemption rights available at the option of the holder. The Series C Preferred Stock is non- convertible and does not pay dividends. On October 17, 2011, the Company received net cash proceeds of $1,000,000 for the sale of 10,000 shares of Series C Preferred Stock to a greater than 10% stockholder of the Company. Since certain of the Company’s preferred shares contain redemption rights which are not solely within the Company’s control, these issuances of preferred stock were initially presented as temporary equity. In connection with the issuance, the investor received five-year immediately exercisable warrants to purchase 270,000 shares of the Company’s Common Stock at an exercise price of $2.90 per share and which had a relative fair value of $526,522 on the date of grant. The $526,522 relative fair value was recorded as a discount against the Series C Preferred Stock and was initially amortized as deemed dividends over the period through January 15, 2013. On February 13, 2013, the Company received a Notice of Redemption of Series C Preferred Stock. As a result of the Convertible Notes coming due and not being paid on December 31, 2012, the Company accelerated the accretion rate of the deemed dividend on the Redeemable Preferred Stock – Series C and reclassified the Redeemable Preferred Stock – Series C from temporary equity to current liabilities. Incentive Compensation / Stock Option Plans The 2009 Incentive Compensation Plan (the “2009 Plan”) was approved on May 15, 2009 and June 4, 2009, and the increase in the total number of shares of Common Stock issuable pursuant to the 2009 Plan to 2,881,425 was approved on October 4, 2010 and September 20, 2011 by the Board of Directors and Stockholders, respectively. The 2009 Plan imposes individual limitations on the amount of certain awards. Under these limitations during any fiscal year of the Company, the number of options, stock appreciation rights, shares of restricted stock, shares of deferred stock, performance shares and other stock based-awards granted to any one participant under the 2009 Plan may not exceed 250,000 shares, subject to adjustment in certain circumstances. The maximum amount that may be paid out as performance units in any 12-month performance period is an aggregate value of $2,000,000, and the maximum amount that may be paid out as performance units in any performance period greater than 12 months is an aggregate value of $4,000,000. The maximum term of each option or stock appreciation right, the times at which each option or stock appreciation right will be exercisable, and provisions requiring forfeiture of unexercised options or stock appreciation rights at or following termination of employment generally are fixed by the board of directors or committee of the Company’s board of directors designated to administer the 2009 Plan (the “Committee”), except that no option or stock appreciation right may have a term exceeding ten years. The exercise price per share subject to an option and the grant price of a stock appreciation rights are determined by the Committee, but in the case of an incentive stock option (ISO) must not be less than the fair market value of a share of Common Stock on the date of grant. Following the approval of the Board of Directors and stockholders of record as of August 25, 2014, the Company adopted the 2014 Equity Incentive Plan (the “2014 Plan”) which made a total of 6,000,000 shares of common stock authorized and available for issuance pursuant to awards granted under the 2014 Plan. The 2014 Plan limit imposes individual limitations on the amount of certain awards. Under these limitations during any fiscal year of the Company, the number of options, stock appreciation rights, shares of restricted stock, shares of deferred stock, performance shares and other stock based-awards granted to any one participant under the 2014 Plan may not exceed 1,500,000 shares, subject to adjustment in certain circumstances. The maximum number of shares that may be awarded that are not subject to performance targets is an aggregate of 1,200,000 shares. The maximum term of each option or stock appreciation right, the times at which each option or stock appreciation right will be exercisable, and provisions requiring forfeiture of unexercised options or stock appreciation rights at or following termination of employment generally are fixed by the Committee designated to administer the 2014 Plan, except that no option or stock appreciation right may have a term exceeding ten years. The exercise price per share subject to an option and the grant price of a stock appreciation rights are determined by the Committee, but in the case of an incentive stock option (ISO) must not be less than the fair market value of a share of Common Stock on the date of grant. Stock Options Grants During the year ended December 31, 2014, the Company granted options to directors of the Company to purchase an aggregate of 1,687,857 shares of common stock under the 2009 Plan and 2014 Plan at an exercise price of between $0.12 to $0.16 per share for an aggregate grant date value of $266,472. The options have a vesting period ranging from immediate to three months and have a term of ten years. On October 23, 2014, the Company granted options to an employee of the Company to purchase an aggregate of 250,000 shares of common stock under the 2009 Plan at an exercise price of $0.18 per share for an aggregate grant date value of $35,825. The options have a vesting period of one year and have a term of five years. During the year ended December 31, 2015, the Company granted options to employees and directors of the Company to purchase an aggregate of 2,141,339 shares of common stock under the 2014 Plan at an exercise price of between $0.09 to $0.15 per share for an aggregate grant date value of $211,860. The options have a vesting period ranging from immediate to three years and have a term of ten years. During December 31, 2015, the Company granted options to consultants of the Company to purchase an aggregate of 349,861 shares of common stock under the 2014 Plan at an exercise price of between $0.09 and $0.12 per share for an aggregate grant date value of $37,423. The options have a vesting period ranging from immediate to three years and have a term of ten years. Valuation and Amortization Option valuation models require the input of highly subjective assumptions. The fair value of the stock-based payment awards is estimated utilizing the Black-Scholes option model. The volatility component of this calculation is derived from the historical trading prices of the Company’s own Common Stock. The Company accounts for the expected life of options in accordance with the “simplified” method for “plain vanilla” share options. The risk-free interest rate was determined from the implied yields of U.S. Treasury zero-coupon bonds with a remaining life consistent with the expected term of the options. In addition, the Company is required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. In estimating the Company’s forfeiture rate, the Company analyzed its historical forfeiture rate, the remaining lives of unvested options, and the number of vested options as a percentage of total options outstanding. If the Company’s actual forfeiture rate is materially different from its estimate, or if the Company reevaluates the forfeiture rate in the future, the stock-based compensation expense could be significantly different from what the Company has recorded in the current period. The Company estimated forfeitures related to option grants at a weighted average annual rate of 3% and 4% per year for options granted during the years ended December 31, 2015 and 2014, respectively. In applying the Black-Scholes option pricing model to stock options granted, the Company used the following weighted average assumptions: For the Year Ended December 31, 2015 2014 Risk free interest rate 1.35% to 2.28% 0.97% to 2.29% Dividend yield 0.00% 0.00% Expected volatility 195% to 199.0% 190% to 191.0% Expected life in years 5.5 to 10.0 3.0 to 10.0 The weighted average fair value of the stock options granted during the years ended December 31, 2015 and 2014 was $0.10 and $0.16 per share, respectively. Stock-based compensation expense related to stock options was recorded in the consolidated statements of operations as a component of selling, general and administrative expenses and totaled $308,026 and $698,015 for the years ended December 31, 2015 and 2014, respectively. As of December 31, 2015, stock-based compensation expense related to stock options of $1,033,764 remains unamortized, including $142,195 which is being amortized over the weighted average remaining period of 2.0 years. The remaining $891,569 is related to a performance based option where vesting is currently deemed to be improbable and no amount is being amortized. Summary A summary of the stock option activity during the years ended December 31, 2015 and 2014 is presented below: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Life Intrinsic Options Price In Years Value Outstanding, January 1, 2014 2,543,150 $ 2.37 Granted 1,937,857 0.13 Exercised - - Forfeited (536,450 ) 2.37 Outstanding, December 31, 2014 3,944,557 $ 1.27 Outstanding, January 1, 2015 3,944,557 $ 1.27 Granted 2,491,200 0.10 Exercised - - Forfeited (1,094,473 ) 1.40 Outstanding, December 31, 2015 5,341,284 $ 0.70 7.8 $ 157,079 Exercisable, December 31, 2015 3,904,451 $ 0.65 7.8 $ 100,446 The following table presents information related to stock options at December 31, 2015: Options Outstanding Options Exercisable Weighted Weighted Weighted Average Range of Average Outstanding Average Remaining Exercisable Exercise Exercise Number of Exercise Life Number of Price Price Options Price In Years Options $ 0.09- $2.20 $ 0.23 4,649,784 $ 0.24 8.2 3,462,951 $ 2.21 - $3.80 3.34 501,500 2.87 4.1 251,500 $ 3.81 - $6.99 5.16 190,000 5.16 5.7 190,000 $ 0.09 - $6.99 $ 0.70 5,341,284 $ 0.65 7.8 3,904,451 Warrants Valuation In applying the Black-Scholes option pricing model to stock warrants granted, the Company used the following weighted average assumptions: Grants For the Year Ended December 31, 2015 2014 Risk free interest rate 1.22% to 1.75% 1.52% to 2.52% Dividend yield 0.00% 0.00% Expected volatility 194.0% to 197.0% 171.0% to 192.0% Expected life in years 2.90 to 7.50 5.00 to 8.50 During the year ended December 31, 2014, the Company granted vested five-year warrants to purchase an aggregate of 661,200 shares of Common Stock at an exercise price of $0.15 per share to a consultant related to services provided related to the 2014 Private Placement. The warrants had an issuance date fair value of $132,893 which was treated as a cost of capital. On August 25, 2014, the Company granted vested five-year warrants to purchase an aggregate of 600,000 shares of Common Stock at an exercise price of $0.25 per share to a consultant related to investor relations services to be provided. The warrants had an issuance date fair value of $133,225 which was expensed immediately as stock based compensation. On April 3, 2015, the Company granted warrants to a former employee of the Company to purchase an aggregate of 137,430 shares of common stock at an exercise price of $0.09 per share for an aggregate grant date value of $12,018. The warrants have a term of five years. The warrants were issued as repayment for amounts previously accrued. The weighted average fair value of the stock warrants granted during the years ended December 31, 2015 and 2014, respectively, was $0.09 and $0.20 per share. Exercise During the year ended December 31, 2015, the Company issued an aggregate of 97,449 shares of Common Stock to a holder of warrants who elected to exercise warrants to purchase 137,430 shares of Common Stock on a "cashless" basis under the terms of the warrants. The warrants had an exercise price of $0.09 per share. The aggregate intrinsic value of the warrants exercised was $27,486 for the year ended December 31, 2015. A stock-based compensation benefit related to the mark-to-market adjustment for consultant warrants for the year ended December 31, 2015 was recorded in the consolidated statements of operations as a component of selling, general and administrative expenses and totaled $322. During the years ended December 31, 2015 and 2014, the Company recorded aggregate stock-based compensation expense of $12,340 and $132,503, respectively, related to warrants. As of December 31, 2015, stock-based compensation expense related to warrants of $576,840 remains unamortized. The remaining $576,840 is related to a performance based warrant where vesting is currently deemed to be improbable and no amount is being amortized. A summary of the stock warrant activity during the years ended December 31, 2015 and 2014, respectively, is presented below: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Life Intrinsic Warrants Price In Years Value Outstanding, January 1, 2014 2,342,846 $ 0.94 Granted 6,996,198 0.28 Exercised - - Forfeited - - Outstanding, January 1, 2015 9,339,044 $ 0.45 Granted 887,430 0.10 Exercised (137,430 ) 0.09 Forfeited (42,846 ) 3.00 Outstanding, December 31, 2015 10,046,198 $ 0.43 3.3 $ 61,612 Exercisable, December 31, 2015 9,796,198 $ 0.34 3.4 $ 61,612 The following table presents information related to stock warrants at December 31, 2015: Warrants Outstanding Warrants Exercisable Weighted Weighted Weighted Average Range of Average Outstanding Average Remaining Exercisable Exercise Exercise Number of Exercise Life Number of Price Price Warrants Price In Years Warrants $ 0.09 - $0.35 $ 0.26 9,496,198 $ 0.26 3.5 9,496,198 $ 0.36 - $3.00 2.90 520,000 2.90 0.8 270,000 $ 3.01 - $4.95 4.95 30,000 4.95 1.8 30,000 $ 0.09 - $4.05 0.41 10,046,198 $ 0.34 3.4 9,796,198 Services Contributed Effective January 1, 2013, the Company’s Chief Executive Officer of the Company waived payment for services contributed during 2013. On April 28, 2014, the Compensation Committee approved the payment of an annual salary of $150,000 to the Company’s Chief Executive Officer, effective May 1, 2014. As a result, the Company imputed the value of the services contributed and recorded salary expense $116,666 for the year ended December 31, 2014, with a corresponding credit to stockholders’ deficiency.

Commitments and Contingent Liab

Commitments and Contingent Liabilities	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
9. Commitments and Contingent Liabilities	Operating Leases The Company is a party to a lease agreement dated June 15, 2011 for approximately 62,000 square feet of office and storage space with an entity. On December 15, 2014, the Company entered into a sublease agreement for 34,106 square feet of warehouse space at the Company’s corporate headquarters in Florence, Kentucky. The sublease, which required rent of $9,948 per month, was terminated by the Company on the original expiration date of June 14, 2015. On April 27, 2015, the Company entered in an amendment to the lease agreement which reduced the square feet of office and storage space to approximately 28,500 square feet, effective June 15, 2015. Per the amendment, the monthly lease rate reduced to $7,770 in June 2015, $4,868 from July 2015 to December 2015 and $5,462 in year 2016. The Company accounts for rent expense using the straight line method of accounting, deferring the difference between actual rent due and the straight line amount. The Company will amortize the balance of the remaining deferred rent payable related to the original lease over the remaining life of the amended lease term. The lease expires on January 1, 2020 (as amended). See Note 13. Deferred rent payable of $25,852 and $36,053 as of December 31, 2015 and 2014, respectively, has been included in accrued expenses and other current liabilities on the consolidated balance sheets. On June 7, 2013, Pagosa signed a three year lease for $1,000 per month to house an office, pharmacy as well as inventory and is located in Lawrenceburg, IN. On July 8, 2013, the parties agreed to extend the lease for two additional years, such that the new termination date is now June 7, 2018. On January 14, 2014, the Company closed Pagosa and vacated the Lawrenceburg facility. The Company is currently in discussions with the Landlord regarding termination of the lease related to the building. The present value of the remaining lease payments of $49,614 is reflected as a component of accrued expenses and other liabilities on the consolidated financial statements as of December 31, 2015. Future minimum payments, by year and in the aggregate, under operating leases as of December 31, 2015 are as follows: For years ending December 31, Amount 2016 $ 77,544 2017 12,000 2018 5,000 Total future minimum lease payments $ 94,544 During the years ended December 31, 2015 and 2014, the Company recorded aggregate rent expense of $106,833 and $250,576, respectively. Litigation In the ordinary course of business, we may become subject to lawsuits and other claims and proceedings that might arise from litigation matters or regulatory audits. Such matters are subject to uncertainty and outcomes are often not predictable with assurance. Our management does not presently expect that any such matters will have a material adverse effect on the Company’s consolidated financial condition or consolidated results of operations. We are not currently involved in any pending or threatened material litigation or other material legal proceedings nor have we been made aware of any penalties from regulatory audits, except as described below. On February 9, 2012, two of our former stockholders, Rock Castle Holdings, LLC and Jason Smith (collectively “Plaintiffs”), filed suit against us in the Hamilton County, Ohio Court of Common Pleas, alleging that we had breached the terms of certain incentive options we granted to the Plaintiffs in connection with our now-terminated oral consulting arrangements with the Plaintiffs, by among other things, refusing Plaintiffs’ purported exercise of options to purchase 233,332 shares of our Common Stock at an exercise price of $2.00 per share in December 2011. Plaintiffs requested that, among other things, the court require us to permit the exercise of the 233,332 options. Plaintiffs also provided an expert report indicating damages of $2.086 million. On December 1, 2014, the Company executed a settlement agreement with the Plaintiff for $150,000 to be paid in unequal monthly installments through June 10, 2015. The settlement amount was included in Selling, General and Administrative expense for the year ended December 31, 2014 and aggregate payments of $135,000 and $15,000 were made during the years ended December 31, 2015 and 2014, respectively. On October 9, 2012, American Express Travel Related Services Company, Inc. brought legal action against the Company in the Boone County, Kentucky Circuit Court. The action seeks to recover the unpaid balance on a credit card account in the amount of $87,029, plus interest and costs. The litigation was resolved on July 10, 2013 by a negotiated settlement. The remaining balance of $2,029 is accrued in the accompanying consolidated balance sheet as of December 31, 2014 and was repaid in full in January 2015. The Company was a party to a putative stockholder derivative action that was filed in the Court of Chancery of the State of Delaware on May 7, 2013 against certain directors and our chief executive officer and against us, as a nominal defendant. The derivative complaint sought unspecified compensatory damages and other relief. On January 8, 2014, in a stipulation and order of dismissal, the action was dismissed with prejudice to plaintiff, with each party bearing its own attorneys' fees and costs. On May 15, 2013, a former consultant filed suit in Boone County, Kentucky Circuit Court alleging breach of contract and unjust enrichment for unpaid consulting fees and expenses of approximately $55,000. On September 29, 2014, the Company executed a settlement agreement with the former consultant for $25,000 which was paid in monthly installments through March 1, 2015. As of December 31, 2015, such settlement amount has been fully repaid.

Concentrations

Concentrations	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
10. Concentrations	The Company maintains deposits in financial institutions which are insured by the Federal Deposit Insurance Corporation (“FDIC”). At various times, the Company has deposits in these financial institutions in excess of the amount insured by the FDIC. During the year ended December 31, 2015, two vendors represented 63% and 11% of total inventory purchases. During the year ended December 31, 2014, two vendors represented 68% and 14% of total inventory purchases, respectively. Two vendors represented 43% and 13% of the accounts payable balance as of December 31, 2015. Three vendors represented 36%, 11% and 10% of the accounts payable balance as of December 31, 2014.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
11. Related Party Transactions	Effective September 4, 2014, the Company entered into a consulting agreement with Dr. Bruce Bedrick, a stockholder, to provide consulting services related to business development and marketing activities for the Company and other duties as agreed to by management. The Company was required to pay the related party a monthly fee of $10,000 plus expense reimbursement. Subsequent to the effective date, the related party agreed to defer the payment of the monthly fee for a period of four months beginning with the November 4, 2014 payment. The deferred fees will be payable on the earlier of the termination date or the second anniversary of the effective date. The consulting agreement has an initial term of one year and can be automatically renewed for a one year period unless terminated by either party. The Agreement may be terminated by the Company by providing a sixty day notice prior to the first anniversary of the effective date. On July 6, 2015, the Company notified the related party of its intent to terminate the contract effective September 4, 2015. During the years ended December 31, 2015 and 2014, the Company incurred and paid consulting and other expenses of $100,000 and $21,110, respectively, related to the consulting agreement. Between June 2009 and April 2012, an employee who is the son of the managing member of a limited liability company that beneficially owns over 5% of the Company’s Common Stock received advances from the Company in various forms which totaled $391,469 including interest. Principal repayments towards the outstanding advances aggregating $235,000 were made through September 30, 2014. In April 2012, this employee voluntarily resigned from the Company. The individual agreed to repay the remaining balance with interest based on prime rate on the first business day of the calendar quarter. The amount has been included in Stockholders’ Deficiency as the Company has determined to exercise its rights through a pledge agreement for 42,860 shares as collateral. At December 31, 2014, the Company estimated the value of the collateral at $2,143. During the year ended December 31, 2015, the Company wrote off the value of the collateral to $0.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2015
Income Taxes
12. Income Taxes	The income tax provision (benefit) for the years ended December 31, 2015 and 2014 was as follows: For The Year Ended December 31, 2015 2014 Federal: Current $ - $ - Deferred (269,394 ) (387,752 ) State and local: Current - - Deferred (21,621 ) (161,244 ) (291,015 ) (548,996 ) Change in valuation allowance 291,015 548,996 Income tax provision (benefit) $ - $ - The effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2015 and 2014 are as follows: December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 5,585,989 $ 5,315,823 Stock-based compensation 767,443 722,782 Inventory reserves 8,800 6,090 Allowance for bad debt 17,915 17,948 Deferred Revenue 2,575 - Deferred Rent 9,824 14,108 Contingent Liability 1,910 1,910 Charitable contribution carryforwards 5,772 5,772 Accruals 22,491 31,007 Total deferred tax assets 6,422,719 6,115,440 Valuation allowance (6,379,189 ) (6,088,174 ) Deferred tax assets, net of valuation allowance 43,530 27,266 Deferred tax liabilities: Property and equipment (29,881 ) (27,266 ) Web Development (13,649 ) - Deferred tax liabilities $ (43,530 ) $ (27,266 ) Net deferred tax assets $ - $ - Change in valuation allowance $ 291,015 $ 548,996 The Company assesses the likelihood that deferred tax assets will be realized. To the extent that realization is not likely, a valuation allowance is established. Based upon the history of losses, management believes that it is more likely than not that future benefits of deferred tax assets will not be realized and has established a full valuation allowance for the years ended December 31, 2015 and 2014. The Company is in the process of filing its federal and state tax returns for the years ended December 31, 2015 and 2014. The Net operating losses (“NOLs”) for these years will not be available to reduce future taxable income until the returns are filed. Assuming these returns are filed, as of December 31, 2015 and 2014, the Company had $15,470,633 and $14,736,276, respectively, of federal net operating loss carryforwards (“NOL’s”) that may be available to offset future taxable income. The federal net operating loss carryforwards, if not utilized, will expire from 2027 to 2035. As of December 31, 2015 and 2014, the Company had $8,149,352 and $7,637,237 of state net operating loss carryforwards available to offset future taxable income. The state NOLs, if not utilized, will expire beginning in 2031. In accordance with Section 382 of the Internal Revenue code, the usage of the Company’s net operating loss carryforwards could be limited in the event of a change in ownership. Based upon a study that analyzed the Company’s stock ownership, a change of ownership was deemed to have occurred in 2011. This change of ownership created an annual limitation of approximately $2,116,000 on the usage of the Company’s losses which are available through 2031. A full Section 382 analysis has not been prepared since 2011 and any NOLs arising since 2011 could be subject to limitation under Section 382. For the years ended December 31, 2015 and 2014, the expected tax expense (benefit) based on the statutory rate is reconciled with the actual tax expense (benefit) as follows: For The Year Ended December 31, 2015 2014 US federal statutory rate (34.0 %) (34.0 %) State tax rate, net of federal benefit (4.0 %) (4.0 %) Permanent differences - Stock based compensation 12.3 % 4.8 % - Adjustments to prior deferred tax balances (20.7 %) 2.4 % Change in valuation allowance 46.4 % 30.8 % Income tax provision (benefit) 0.0 % 0.0 %

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
13. Subsequent Events	The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the consolidated financial statements, except as disclosed. Employment Agreement On January 11, 2016, the Company entered into an employment agreement (the “Employment Agreement”) with Mr. Daniel Seliga. The terms of the Employment Agreement include a term of two years beginning on January 1, 2016 with an extension provision, the titles and positions of Chief Operating Officer and Chief Financial Officer, an initial base salary of $150,000 per year, subject to certain bonus and severance provisions. Mr. Seliga’s agreement is bound by restrictive covenants regarding disclosure of confidential information, non-solicitation and employee non-competition. Notes Payable On January 11, 2016, the Company entered into an Amendment to Promissory Note with a lender, effective October 31, 2015, which extended the maturity date of the note payable from November 1, 2015 to October 31, 2016. In consideration of the extension of the maturity date of the note payable, the Company issued to the lender a five-year warrant to purchase 75,000 shares of Common Stock at an exercise price of $0.25 per share. The warrant contains customary anti-dilution provisions. On January 19, 2016, the Company entered into an Amended and Restated Promissory Note with its Lender, effective December 31, 2015, which extended the maturity date of the Senior Note from December 31, 2015 to May 31, 2016 (the January 2016 Note). As part of the extension, the Senior Note contains financial covenants which require the Company to meet certain minimum targets for EBITDAS for the quarters ending December 31, 2015 and March 31, 2016. The other material January 2016 Note terms are unchanged from the Senior Note. Operating Leases The Company entered into an amendment to the lease agreement related to its corporate headquarters in Florence, Kentucky, which extended the lease for an additional three years. Per the amendment, the monthly lease rate will be $7,770 in 2016, $6,649 in 2017, $6,886 in 2018 and $7,124 in 2019. The lease expires on January 1, 2020.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Summary Of Significant Accounting Policies Policies
Principles of Consolidation	The consolidated financial statements include the accounts of HealthWarehouse.com, Inc., Hwareh.com, Inc., Hocks.com, Inc., ION Holding NV, ION Belgium NV and Pagosa Health LLC, its wholly-owned subsidiaries. ION Holding NV and ION Belgium NV are inactive subsidiaries. All material inter-company balances and transactions have been eliminated in consolidation. On June 4, 2013, the Company formed a wholly-owned subsidiary called Pagosa Health LLC (“Pagosa”). On January 14, 2014, the Company closed the Pagosa location and decided to focus on its core consumer prescription business. The entity was dissolved in 2014. See Note 9.
Use of Estimates	The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s significant estimates include reserves related to accounts receivable and inventory, the recoverability and useful lives of long-lived assets, the valuation allowance related to deferred tax assets, the valuation of equity instruments and debt discounts.
Reclassifications	Certain accounts in the prior period consolidated financial statements have been reclassified for comparison purposes to conform to the presentation of the current period consolidated financial statements. These reclassifications had no effect on the previously reported net loss.
Cash	The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. As of December 31, 2015 and 2014, the Company does not have any cash equivalents.
Restricted Cash	Restricted cash represents cash held by the Company’s credit card processor as a reserve to cover potential future refunds and funds held by the senior lender as collateral for the Company’s Senior Note (See Note 6).
Allowance for Doubtful Accounts Receivable	Accounts receivable are shown net of an allowance for doubtful accounts of $47,143 and $47,233 as of December 31, 2015 and 2014, respectively. The Company’s management has established an allowance for doubtful accounts sufficient to cover probable and reasonably estimable losses. The nature of the business is that the majority of the payments are made before the product is sent. If the financial conditions of customers were to materially deteriorate, an increase in the allowance amount could be required. The allowance for doubtful accounts considers a number of factors, including collection experience, current economic trends, estimates of forecasted write-offs, aging of the accounts receivable, and other factors.
Inventories	Inventories consist of finished goods and is stated at the lower of cost (using the first-in, first-out method) or market. As part of the valuation process, inventory reserves are established to state excess and slow-moving inventory at their estimated net realizable value. The valuation process for excess or slow-moving inventory contains uncertainty because management must use judgment to estimate when the inventory will be sold and the quantities and prices at which the inventory will be sold in the normal course of business. Inventory reserves are periodically reviewed, reflecting current risks, trends and changes in industry conditions. When preparing these estimates, management considers historical results, inventory levels and current operating trends. In the event the estimates differ from actual results, inventory-related reserves may be adjusted and could materially impact the results of operations.
Property and Equipment, Net	Property and equipment are stated at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The costs of additions and betterments are capitalized and expenditures for repairs and maintenance, which do not extend the economic useful life of the related assets, are expensed in the period incurred. Gains or losses on disposal of property and equipment are reflected in the statements of operations in the period of disposal.
Impairment of Long-Lived Assets	The Company reviews the carrying value of intangibles and other long-lived assets for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets is measured by comparing the carrying amount of the asset or asset group to the undiscounted cash flows that the asset or asset group is expected to generate. If the undiscounted cash flows of such assets are less than the carrying amount, the impairment to be recognized is measured by the amount by which the carrying amount of the property, if any, exceeds its fair value. As of December 31, 2015 and 2014, the Company has not recognized any such impairment.
Website Development Costs	The Company capitalizes costs associated with the development of its website. During the years ended December 31, 2015 and 2014, the Company capitalized $17,972 and $114,616, respectively, of website development costs. The Company is amortizing the website development costs on a three year straight-line basis and incurred amortization expense of $75,951 and $55,855 during the years ended December 31, 2015 and 2014, respectively. As of December 31, 2015, unamortized website development costs totaled $84,562. Estimated future amortization expense related to website development costs is $62,361 in 2016, $21,147 in 2017 and $1,054 in 2018.
Shipping and Handling Costs	The Company policy is to provide free standard shipping and handling for most orders. Shipping and handling costs incurred are recognized in selling, general and administrative expenses. Such amounts aggregated $612,377 and $511,636 for the years ended December 31, 2015 and 2014, respectively. In certain circumstances, shipping and handling costs are charged to the customer and recognized in revenues. The amounts recognized in revenues for the years ended December 31, 2015 and 2014 were $251,550 and $162,221, respectively.
Fair Value of Financial Instruments	Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. These fair value measurements apply to all financial instruments that are measured and reported on a fair value basis. Based on the observability of the inputs used in the valuation techniques, financial instruments are categorized according to the fair value hierarchy, which ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1 - Observable inputs such as quoted prices in active markets. Level 2 - Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. Level 3 - Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the assignment of an asset or liability within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The carrying value of items included in working capital approximates fair value because of the relatively short maturity of these instruments. The Company’s notes payable approximate fair value because the terms are substantially similar to comparable debt in the marketplace.
Income Taxes	Deferred tax assets and liabilities are determined on the basis of the difference between the tax basis of assets and liabilities and their respective financial reporting amounts (“temporary differences”) at enacted tax rates in effect for the years in which the temporary differences are expected to reverse. U.S. GAAP prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Management has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company’s financial statements as of December 31, 2015 and 2014. The Company does not expect any significant changes in the unrecognized tax benefits within twelve months of the reporting date. The Company classifies interest expense and any related penalties related to income tax uncertainties as a component of income tax expense. No interest or penalties have been recognized during the years ended December 31, 2015 and 2014.
Debt Discounts	The Company records, as a discount to notes and convertible notes, the relative fair value of warrants issued in connection with the issuances and the intrinsic value of any conversion options based upon the differences between the fair value of the underlying Common Stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized to interest expense using the interest method over the earlier of the term of the related debt or their earliest date of redemption.
Revenue Recognition	Revenues for the sales of products are recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed and determinable and collectability is reasonably assured. The Company defers revenue when cash has been received from the customer but delivery has not yet occurred. Such amounts are reflected as deferred revenues in the accompanying consolidated financial statements.
Advertising	The Company expenses all advertising costs as incurred. Advertising expense for the years ended December 31, 2015 and 2014 was $508,633 and $103,536, respectively.
Sales Taxes	The Company accounts for sales taxes imposed on its goods and services on a net basis in the statement of operations.
Net Earnings (Loss) Per Share of Common Stock	Basic net earnings (loss) per share is computed by dividing net earnings (loss) attributable to Common Stockholders by the weighted average number of common shares outstanding during the period. Diluted net earnings per share reflects the potential dilution that could occur if securities or other instruments to issue Common Stock were exercised or converted into Common Stock. Potentially dilutive securities are excluded from the computation of diluted net earnings per share if their inclusion would be anti-dilutive and consist of the following: December 31, 2015 2014 Options 5,341,284 3,944,557 Warrants 10,046,198 9,339,044 Series B Convertible Preferred Stock 5,507,202 5,146,902 Total potentially dilutive shares 20,894,684 18,430,503
Stock-Based Compensation	Stock-based compensation expense for all stock-based payment awards is based on the estimated fair value of the award. For employees and directors, the award is measured on the grant date. For non-employees, the award is measured on the grant date and is then remeasured at each vesting date and financial reporting date. The Company recognizes the estimated fair value of the award as compensation cost over the requisite service period of the award, which is generally the option vesting term. The Company generally issues new shares of Common Stock to satisfy option and warrant exercises.
Preferred Stock	Preferred shares subject to mandatory redemption (if any) are classified as liability instruments and are measured at fair value. The Company classifies conditionally redeemable preferred shares, which includes preferred shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control, as temporary equity. At all other times, the Company classifies its preferred shares in stockholders’ deficiency.
Convertible Instruments	U.S. GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. An exception to this rule is when the host instrument is deemed to be conventional as that term is described under applicable U.S. GAAP. When the Company has determined that the embedded conversion options should not be bifurcated from their host instruments, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying Common Stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. The Company also records, when necessary, deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying Common Stock at the commitment date of the transaction and the effective conversion price embedded in the preferred shares.
Common Stock Warrants and Other Derivative Financial Instruments	The Company classifies as equity any contracts that (i) require physical settlement or net-share settlement or (ii) provide the Company with a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement) providing that such contracts are indexed to the Company's own stock. The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the Company’s control) or (ii) gives the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). The Company assesses classification of its Common Stock purchase warrants and other free standing derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required. The Company evaluated its free standing warrants to purchase Common Stock to assess their proper classification in the balance sheet as of December 31, 2015 and 2014 using the applicable classification criteria enumerated under U.S. GAAP and determined that the Common Stock purchase warrants contain fixed settlement provisions.
Recently Issued Accounting Pronouncements	In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entitiy’s Ability to Continue as a Going Concern” (“ASU 2014-15”). ASU 2014-15 requires management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern for each annual and interim reporting period. If substantial doubt exists, additional disclosure is required. This new standard will be effective for the Company for annual and interim periods beginning after December 15, 2016. Early adoption is permitted. Adoption of this pronouncement is not expected to have a material impact on its consolidated financial statements. The FASB has issued ASU No. 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This ASU requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. Adoption of this pronouncement is not expected to have a material impact on the Company’s consolidated financial statements. The FASB has issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in Accounting Standards Codification 605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective on January 1, 2017 and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. The Company has not yet determined the effect of the adoption of this standard and its impact on the Company's consolidated financial position and results of operations. In April 2015, the FASB issued ASU No. 2015-03 (ASU 2015-03), Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In July 2015, the FASB issued Accounting Standards Update No. 2015-11, “ Simplifying the Measurement of Inventory In August 2015, the FASB issued FASB ASU No. 2015-15, “ Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842)

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2015
Summary Of Significant Accounting Policies Tables
Schedule of Potentially Dilutive Securities	December 31, 2015 2014 Options 5,341,284 3,944,557 Warrants 10,046,198 9,339,044 Series B Convertible Preferred Stock 5,507,202 5,146,902 Total potentially dilutive shares 20,894,684 18,430,503

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2015
Property And Equipment Tables
Property and Equipment	December 31, Estimated 2015 2014 Useful Life Computer Software $ 230,299 $ 230,299 5 years Equipment 548,156 544,108 15 years Office Furniture and Equipment 95,754 95,754 7 years Computer Hardware 32,992 30,710 5 years Leasehold Improvements 303,318 303,318 (a) Total 1,210,519 1,204,189 Less: accumulated depreciation (801,271 ) (692,903 ) Property and Equipment, Net $ 409,248 $ 511,286 (a) Lesser of useful life or initial term of lease

Accrued Expenses and Other Cu23

Accrued Expenses and Other Current Liabilities (Tables)	12 Months Ended
	Dec. 31, 2015
Accrued Expenses And Other Current Liabilities Tables
Accrued expenses and other current liabilities	December 31, 2015 2014 Deferred Rent $ 25,852 $ 36,053 Advertising 76,639 109,930 Salaries and Benefits 64,007 82,222 Dividend Payable 319,854 298,918 Accrued Interest 44,249 48,868 Accrued Rent 49,614 46,604 Other 17,450 64,920 Total $ 597,665 $ 687,515

Equipment Lease Payable (Tables

Equipment Lease Payable (Tables)	12 Months Ended
	Dec. 31, 2015
Equipment Lease Payable Tables
Summary of future minimum lease payments	For year ending December 31, Lease Payments 2016 48,696 Total $ 48,696 Less: Amount representing interest (2,553 ) Present value of future lease payments $ 46,143 Less: Current portion (46,143 ) Long term portion -

Stockholders' Deficiency (Table

Stockholders' Deficiency (Tables)	12 Months Ended
	Dec. 31, 2015
Stock Option [Member]
Schedule of Stock Granted	For the Year Ended December 31, 2015 2014 Risk free interest rate 1.35% to 2.28% 0.97% to 2.29% Dividend yield 0.00% 0.00% Expected volatility 195% to 199.0% 190% to 191.0% Expected life in years 5.5 to 10.0 3.0 to 10.0
Summary of Stock Activity	Weighted Weighted Average Average Remaining Aggregate Number of Exercise Life Intrinsic Options Price In Years Value Outstanding, January 1, 2014 2,543,150 $ 2.37 Granted 1,937,857 0.13 Exercised - - Forfeited (536,450 ) 2.37 Outstanding, December 31, 2014 3,944,557 $ 1.27 Outstanding, January 1, 2015 3,944,557 $ 1.27 Granted 2,491,200 0.10 Exercised - - Forfeited (1,094,473 ) 1.40 Outstanding, December 31, 2015 5,341,284 $ 0.70 7.8 $ 157,079 Exercisable, December 31, 2015 3,904,451 $ 0.65 7.8 $ 100,446
Summary of Stock Outstanding and Exercisable	Options Outstanding Options Exercisable Weighted Weighted Weighted Average Range of Average Outstanding Average Remaining Exercisable Exercise Exercise Number of Exercise Life Number of Price Price Options Price In Years Options $ 0.09- $2.20 $ 0.23 4,649,784 $ 0.24 8.2 3,462,951 $ 2.21 - $3.80 3.34 501,500 2.87 4.1 251,500 $ 3.81 - $6.99 5.16 190,000 5.16 5.7 190,000 $ 0.09 - $6.99 $ 0.70 5,341,284 $ 0.65 7.8 3,904,451
Warrant [Member]
Schedule of Stock Granted	For the Year Ended December 31, 2015 2014 Risk free interest rate 1.22% to 1.75% 1.52% to 2.52% Dividend yield 0.00% 0.00% Expected volatility 194.0% to 197.0% 171.0% to 192.0% Expected life in years 2.90 to 7.50 5.00 to 8.50
Summary of Stock Activity	Weighted Weighted Average Average Remaining Aggregate Number of Exercise Life Intrinsic Warrants Price In Years Value Outstanding, January 1, 2014 2,342,846 $ 0.94 Granted 6,996,198 0.28 Exercised - - Forfeited - - Outstanding, January 1, 2015 9,339,044 $ 0.45 Granted 887,430 0.10 Exercised (137,430 ) 0.09 Forfeited (42,846 ) 3.00 Outstanding, December 31, 2015 10,046,198 $ 0.43 3.3 $ 61,612 Exercisable, December 31, 2015 9,796,198 $ 0.34 3.4 $ 61,612
Summary of Stock Outstanding and Exercisable	Warrants Outstanding Warrants Exercisable Weighted Weighted Weighted Average Range of Average Outstanding Average Remaining Exercisable Exercise Exercise Number of Exercise Life Number of Price Price Warrants Price In Years Warrants $ 0.09 - $0.35 $ 0.26 9,496,198 $ 0.26 3.5 9,496,198 $ 0.36 - $3.00 2.90 520,000 2.90 0.8 270,000 $ 3.01 - $4.95 4.95 30,000 4.95 1.8 30,000 $ 0.09 - $4.05 0.41 10,046,198 $ 0.34 3.4 9,796,198

Commitments and Contingent Li26

Commitments and Contingent Liabilities (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments And Contingent Liabilities Tables
Summary of future minimum payments under operating leases	For years ending December 31, Amount 2016 $ 77,544 2017 12,000 2018 5,000 Total future minimum lease payments $ 94,544

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Taxes Tables
Summary of income tax provision (benefit)	For The Year Ended December 31, 2015 2014 Federal: Current $ - $ - Deferred (269,394 ) (387,752 ) State and local: Current - - Deferred (21,621 ) (161,244 ) (291,015 ) (548,996 ) Change in valuation allowance 291,015 548,996 Income tax provision (benefit) $ - $ -
Summary of significant portions of the deferred tax assets and liabilities	December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 5,585,989 $ 5,315,823 Stock-based compensation 767,443 722,782 Inventory reserves 8,800 6,090 Allowance for bad debt 17,915 17,948 Deferred Revenue 2,575 - Deferred Rent 9,824 14,108 Contingent Liability 1,910 1,910 Charitable contribution carryforwards 5,772 5,772 Accruals 22,491 31,007 Total deferred tax assets 6,422,719 6,115,440 Valuation allowance (6,379,189 ) (6,088,174 ) Deferred tax assets, net of valuation allowance 43,530 27,266 Deferred tax liabilities: Property and equipment (29,881 ) (27,266 ) Web Development (13,649 ) - Deferred tax liabilities $ (43,530 ) $ (27,266 ) Net deferred tax assets $ - $ - Change in valuation allowance $ 291,015 $ 548,996
Summary of tax expense (benefit) based on the statutory rate	For The Year Ended December 31, 2015 2014 US federal statutory rate (34.0 %) (34.0 %) State tax rate, net of federal benefit (4.0 %) (4.0 %) Permanent differences - Stock based compensation 12.3 % 4.8 % - Adjustments to prior deferred tax balances (20.7 %) 2.4 % Change in valuation allowance 46.4 % 30.8 % Income tax provision (benefit) 0.0 % 0.0 %

Going Concern and Management'28

Going Concern and Management's Liquidity Plans (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Going Concern And Managements Liquidity Plans Details Narrative
Working Capital Deficiency	$ (4,377,000)
Accumulated deficit	(31,159,401)	$ (30,212,865)
Net Losses	(626,682)	(1,783,279)
Net Cash Used in Operating Activities	$ (548,281)	$ (875,769)

Summary of Significant Accoun29

Summary of Significant Accounting Policies (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Summary Of Significant Accounting Policies Details
Options	$ 5,341,284	$ 3,944,557
Warrants	10,046,198	9,339,044
Series B Convertible Preferred Stock	5,507,202	5,146,902
Total potentially dilutive shares	$ 20,894,684	$ 18,430,503

Summary of Significant Accoun30

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Summary Of Significant Accounting Policies Details Narrative
Allowance for doubtful accounts	$ 47,143	$ 47,233
Website development costs	(17,972)	(114,616)
Amortization expense	75,951	55,855
Unamortized website development costs	84,562	142,541
Estimated future amortization expense related to website development costs in 2016	62,361
Estimated future amortization expense related to website development costs in 2017	21,147
Estimated future amortization expense related to website development costs in 2018	1,054
Shipping and handling costs	612,377	511,636
Amounts recognized in revenues	251,550	162,221
Interest or penalties	0	0
Advertising expense	$ 508,633	$ 103,536

Property and Equipment (Details

Property and Equipment (Details) - USD ($)		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014
Property and Equipment, Gross		$ 1,210,519	$ 1,204,189
Less: accumulated depreciation		(801,271)	(692,903)
Property and Equipment, Net		$ 409,248	511,286
Computer Software [Member]
Estimates Useful Life		5 years
Property and Equipment, Gross		$ 230,299	230,299
Equipment [Member]
Estimates Useful Life		15 years
Property and Equipment, Gross		$ 548,156	544,108
Office Furniture and Equipment [Member]
Estimates Useful Life		7 years
Property and Equipment, Gross		$ 95,754	95,754
Computer Hardware [Member]
Estimates Useful Life		5 years
Property and Equipment, Gross		$ 32,992	30,710
Leasehold Improvements [Member]
Estimates Useful Life	[1]	0 years
Property and Equipment, Gross		$ 303,318	$ 303,318
[1]	Lesser of useful life or initial term of lease

Property and Equipment (Detai32

Property and Equipment (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Property And Equipment Details Narrative
Depreciation expense	$ 108,369	$ 116,312

Accrued Expenses and Other Cu33

Accrued Expenses and Other Current Liabilities (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Accrued Expenses And Other Current Liabilities Details
Deferred rent	$ 25,852	$ 36,053
Advertising	76,639	109,930
Salaries and benefits	64,007	82,222
Dividends payable	319,854	298,918
Accrued interest	44,249	48,868
Accrued Rent	49,614	46,604
Other	17,450	64,920
Total	$ 597,665	$ 687,515

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Borrowed loan	$ 250,000	$ 150,000
Senior Note	$ 891,089	$ 750,000
Interest rate on Senior Note	7.75%
Aggregate number of warrants issued	1,875,000
Warrants issued exercise price	$ 0.10	$ 0.35
Warrants issued	750,000	225,000
Fair value related to warrants	$ 472,100
Fair value related to warrants as debt discount	69,600	$ 36,000
Debt discount as interest expense amortized	114,434	229,231
Debt discount as interest expense unamortized		43,034
Related party [Member]
Principal payments made to related party	31,000	5,000
Related party one [Member]
Debt discount as interest expense amortized	15,333	18,400
Principal payments made to related party	18,206
Interest expense	2,868	$ 3,252
Lender [Member]
Borrowed loan	$ 1,000,000

Equipment Lease Payable (Detail

Equipment Lease Payable (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Equipment Lease Payable Details
2,016	$ 48,696
Total	48,696
Less: Amount representing interest	(2,553)
Present value of future lease payments	46,143
Less: Current portion	$ (46,143)	$ (64,101)
Long term portion		$ 46,143

Equipment Lease Payable (Deta36

Equipment Lease Payable (Details Narative) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Equipment Lease Payable Details Narative
Gross Book value of equiment	$ 305,641
Net Book value of equiment	220,344
Depreciation of assets held under capital leases	$ 20,377	$ 20,377

Stockholders' Deficiency (Detai

Stockholders' Deficiency (Details) - Stock Option [Member]	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Dividend yield	0.00%	0.00%
Minimum [Member]
Risk free interest rate	1.35%	0.97%
Expected volatility	195.00%	190.00%
Expected life in years	5 years 6 months	3 years
Maximum [Member]
Risk free interest rate	2.28%	2.29%
Expected volatility	199.00%	191.00%
Expected life in years	10 years	10 years

Stockholders' Deficiency (Det38

Stockholders' Deficiency (Details 1) - Stock Option [Member] - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Number of Options, outstanding
Outstanding, beginning of period (in shares)	3,944,557	2,543,150
Granted	2,491,200	1,937,857
Exercised
Forfeited	(1,094,473)	(536,450)
Outstanding, end of period (in shares)	5,341,284	3,944,557
Exercisable, December 31, 2015	3,904,451
Weighted average exercise price
Outstanding, beginning of period (in dollars per share)	$ 1.27	$ 2.37
Granted	$ 0.10	$ 0.13
Exercised
Forfeited	$ 1.40	$ 2.37
Outstanding, end of period (in dollars per share)	0.70	$ 1.27
Exercisable, December 31, 2015	$ 0.65
Weighted Average Remaining Life In Years
Weighted Average Remaining Life (in years) Outstanding	7 years 9 months 18 days
Weighted Average Remaining Life (in years) Exercisable	7 years 9 months 18 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value Outstanding	$ 157,079
Aggregate Intrinsic Value Exercisable, December 31, 2015	$ 100,446

Stockholders' Deficiency (Det39

Stockholders' Deficiency (Details 2) - Stock Option [Member] - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Weighted Average Exercise Price Outstanding	$ 0.70	$ 1.27	$ 2.37
Number Outstanding	5,341,284	3,944,557	2,543,150
Weighted Average Exercise Price Exercisable	$ 0.65
Weighted Average Remaining Years of Contractual Life	7 years 9 months 18 days
Number Exercisable	3,904,451
$0.09 - $2.20
Weighted Average Exercise Price Outstanding	$ 0.23
Number Outstanding	4,649,784
Weighted Average Exercise Price Exercisable	$ 0.24
Weighted Average Remaining Years of Contractual Life	8 years 2 months 12 days
Number Exercisable	3,462,951
$2.21 - $3.80
Weighted Average Exercise Price Outstanding	$ 3.34
Number Outstanding	501,500
Weighted Average Exercise Price Exercisable	$ 2.87
Weighted Average Remaining Years of Contractual Life	4 years 1 month 6 days
Number Exercisable	251,500
$3.81 - $6.99
Weighted Average Exercise Price Outstanding	$ 5.16
Number Outstanding	190,000
Weighted Average Exercise Price Exercisable	$ 5.16
Weighted Average Remaining Years of Contractual Life	5 years 8 months 12 days
Number Exercisable	190,000

Stockholders' Deficiency (Det40

Stockholders' Deficiency (Details 3) - Warrant [Member]	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Dividend yield	0.00%	0.00%
Minimum [Member]
Risk free interest rate	1.22%	1.52%
Expected volatility	194.00%	171.00%
Expected life in years	2 years 10 months 24 days	5 years
Maximum [Member]
Risk free interest rate	1.75%	2.52%
Expected volatility	197.00%	192.00%
Expected life in years	7 years 6 months	8 years 6 months

Stockholders' Deficiency (Det41

Stockholders' Deficiency (Details 4) - Warrant [Member] - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Number of Warrants, outstanding
Outstanding, beginning of period (in shares)	9,339,044	2,342,846
Granted	887,430	6,996,198
Exercised	(137,430)
Forfeited	(42,846)
Outstanding, end of period (in shares)	10,046,198	9,339,044
Exercisable, December 31, 2015	9,796,198
Weighted average exercise price
Outstanding, beginning of period (in dollars per share)	$ 0.45	$ 0.94
Granted	0.10	$ 0.28
Exercised	0.09
Forfeited	3
Outstanding, end of period (in dollars per share)	0.43	$ 0.45
Exercisable, December 31, 2015	$ 0.34
Weighted Average Remaining Life In Years
Weighted Average Remaining Life (in years) Outstanding	3 years 3 months 18 days
Weighted Average Remaining Life (in years) Exercisable	3 years 4 months 24 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value Outstanding	$ 61,612
Aggregate Intrinsic Value Exercisable, December 31, 2015	$ 61,612

Stockholders' Deficiency (Det42

Stockholders' Deficiency (Details 5) - Warrant [Member] - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Weighted Average Exercise Price Outstanding	$ 0.43	$ 0.45	$ 0.94
Number Outstanding	10,046,198	9,339,044	2,342,846
Weighted Average Exercise Price Exercisable	$ 0.34
Weighted Average Remaining Years of Contractual Life	3 years 4 months 24 days
Number Exercisable	9,796,198
$0.09 - $0.35
Weighted Average Exercise Price Outstanding	$ 0.26
Number Outstanding	9,496,198
Weighted Average Exercise Price Exercisable	$ 0.26
Weighted Average Remaining Years of Contractual Life	3 years 6 months
Number Exercisable	9,496,198
$0.36 - $3.00
Weighted Average Exercise Price Outstanding	$ 2.90
Number Outstanding	520,000
Weighted Average Exercise Price Exercisable	$ 2.90
Weighted Average Remaining Years of Contractual Life	9 months 18 days
Number Exercisable	270,000
$3.01 - $4.95
Weighted Average Exercise Price Outstanding	$ 4.95
Number Outstanding	30,000
Weighted Average Exercise Price Exercisable	$ 4.95
Weighted Average Remaining Years of Contractual Life	1 year 9 months 18 days
Number Exercisable	30,000
$0.09 - $4.95
Weighted Average Exercise Price Outstanding	$ 0.41
Number Outstanding	10,046,198
Weighted Average Exercise Price Exercisable	$ 0.34
Weighted Average Remaining Years of Contractual Life	3 years 4 months 24 days
Number Exercisable	9,796,198

Stockholders' Deficiency (Det43

Stockholders' Deficiency (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Series A Convertible preferred stock, shares available to be issued	44,443	44,443
Selling, General And Administrative Expenses	$ 135,000	$ 15,000
Stock-based compensation expense, unamortized	$ 320,366	$ 830,518
Stock Option [Member]
Option grants at a weighted average annual rate	3.00%	4.00%
Weighted Average Fair Value	$ 0.10	$ 0.16
Selling, General And Administrative Expenses	$ 308,026	$ 698,015
Stock-based compensation expense, unamortized	1,033,764
Stock-based compensation expense, amortized	$ 142,195
Weighted Average Remaining Period	2 years
Performance based option vesting	$ 891,569
Warrant [Member]
Weighted Average Fair Value	$ 0.09	$ 0.20
Selling, General And Administrative Expenses	$ 12,340	$ 132,503
Stock-based compensation expense, unamortized	$ 576,840
Stock-based compensation expense, amortized
Performance based option vesting	$ 576,840
Common stock purchased	137,430
Aggregate grant date value	$ 27,486
Common stock issued	97,449
Series B Preferred Stock [Member]
Converted shares	11.39
Beneficial Conversion Feature Related to Incremental Shares	3,089,642
Preferred Stock Contractual Dividends	319,854	298,918
Employees And Directors [Member]
Common stock purchased	2,141,339
Aggregate grant date value	$ 211,860
Consultants [Member]
Selling, General And Administrative Expenses	$ 322
Common stock purchased	349,861
Aggregate grant date value	$ 37,423

Commitments and Contingent Li44

Commitments and Contingent Liabilities (Details)	Dec. 31, 2015USD ($)
Commitments And Contingent Liabilities Details
2,016	$ 77,544
2,017	12,000
2,018	5,000
Total future minimum lease payments	$ 94,544

Commitments and Contingent Li45

Commitments and Contingent Liabilities (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Commitments And Contingent Liabilities Details Narrative
Deferred rent payable	$ 25,852	$ 36,053
Accrued Rent	49,614	46,604
Rent Expense	106,833	250,576
Selling, General and Administrative expense	$ 135,000	$ 15,000

Concentrations (Details Narrati

Concentrations (Details Narrative)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Vendor 1 [Member]
Concentration Inventory Purchases Percentage	63.00%	68.00%
Concentration Accounts Payable Percentage	43.00%	36.00%
Vendor 2 [Member]
Concentration Inventory Purchases Percentage	11.00%	14.00%
Concentration Accounts Payable Percentage	13.00%	11.00%
Vendor 3 [Member]
Concentration Accounts Payable Percentage		10.00%

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Related Party Transactions Details Narrative
Consulting and other expenses	$ 100,000	$ 21,110
Estimated value of collateral	$ 0	$ (2,143)

Income Taxes (Details)

Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Federal:
Current
Deferred	$ (269,394)	$ (387,752)
State and local:
Current	(21,621)	(161,244)
Deferred	(291,015)	(548,996)
Change in valuation allowance	$ 291,015	$ 548,996
Income tax provision (benefit)

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Deferred tax assets:
Net operating loss carryforwards	$ 5,585,989	$ 5,315,823
Stock-based compensation	767,443	722,782
Inventory reserves	8,800	6,090
Allowance for bad debt	17,915	$ 17,948
Deferred Revenue	2,575
Deferred Rent	9,824	$ 14,108
Contingent Liability	1,910	1,910
Charitable contribution carryforwards	5,772	5,772
Accruals	22,491	31,007
Total deferred tax assets	6,422,719	6,115,440
Valuation allowance	(6,379,189)	(6,088,174)
Deferred tax assets, net of valuation allowance	43,530	27,266
Deferred tax liabilities:
Property and equipment	(29,881)	$ (27,266)
Web Development	(13,649)
Deferred tax liabilities	$ (43,530)	$ (27,266)
Net deferred tax assets
Change in valuation allowance	$ 291,015	$ 548,996

Income Taxes (Details 2)

Income Taxes (Details 2)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Taxes Details 2
US federal statutory rate	(34.00%)	(34.00%)
State tax rate, net of federal benefit	(4.00%)	(4.00%)
Permanent differences
Stock based compensation	12.30%	4.80%
Adjustments to prior deferred tax balances	(20.70%)	2.40%
Change in valuation allowance	46.40%	30.80%
Income tax provision (benefit)	0.00%	0.00%

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Taxes Details Narrative
Federal net operating loss carry forwards	$ 15,470,633	$ 14,736,276
State net operating loss carry forwards	$ 8,149,352	$ 7,637,237
Federal net operating loss carry forwards expiry period	2027 to 2035
State net operating loss carry forwards expiry period	2,031